"Billionaire" Trump Staggered by Fine Bomb? "Financial Crisis May Come"

Involved in Large Lawsuits Including Defamation Beyond Fraudulent Loans
Foreign Media Warns "May Face Financial Tsunami"

Former U.S. President Donald Trump is facing fines amounting to 500 billion won, raising concerns that he could fall into financial distress. Although he has substantial assets, local political and business circles anticipate that the accumulation of various fines and alimony payments will deal a significant blow.

The New York Manhattan District Court ruled on the 16th (local time) in the sentencing trial related to allegations of fraudulent loans involving former President Trump and the Trump Organization, ordering Trump to pay a fine of $364 million (approximately 480 billion won). This amount far exceeds the $250 million requested by the New York State prosecutors. The total includes fines of about $8 million imposed on Trump’s two sons and approximately $1 million on Allen Weisselberg, known as ‘Trump’s accountant.’

Former U.S. President Donald Trump
[Photo by AP News]

If the first-instance ruling is upheld in the appeals court, former President Trump will have to endure significant asset losses. Even if he appeals, he must deposit an amount with the court that includes a certain percentage above the compensation amount. If he chooses to use a surety company instead of depositing the money directly with the court, he must pay a fee of up to 5% of the compensation judgment amount.

Moreover, Trump is entangled in numerous civil and criminal lawsuits beyond this case. Depending on the trial outcomes, he may have to pay additional massive fines and damages. Last month, a jury at the U.S. District Court for the Southern District of New York ruled that Trump must pay $83.3 million (approximately 110 billion won) in defamation damages to fashion columnist E. Jean Carroll.

Additionally, the second trial of Carroll’s civil lawsuit against Trump for sexual assault is ongoing. In May last year, Trump was ordered to pay Carroll $5 million (660 million won) in damages in the first trial of the sexual assault civil lawsuit. He deposited $5.5 million, which is 111% of the verdict amount, with the court to proceed with the appeal.

Earlier, NBC News cited legal experts reporting that “former President Trump could face a ‘financial tsunami.’” Chris Mattei, the attorney who secured a trillion-won-level compensation order on behalf of the victims’ families in a defamation lawsuit against conspiracy theorists related to the Sandy Hook shooting, also predicted, “The successive damage awards will deal a tremendous financial blow to former President Trump.”

Former U.S. President Donald Trump
Photo by AP Yonhap News

It is known that the cash or cash equivalents held by former President Trump amounted to $294 million (approximately 390 billion won) as of the most recent annual financial statement at the end of June 2021.

Considering that the fines determined in the ruling on the 16th alone amount to over $300 million, the Trump family may be forced to borrow money using various real estate assets as collateral or sell assets to raise cash in order to pay the fines in full.

However, attorney Mattei added, “The prosecutors will monitor Trump to prevent him from diverting assets for personal use,” noting, “Therefore, it will not be easy for him to dispose of assets to raise cash.”

This content was produced with the assistance of AI translation services.